Company car tax

bob_a_builder

No doubt there are others, but I find this site very useful on this subject

http://comcar.co.uk/dir1in.cfm

The "quick tax calculation" button on there will give you a good guide

sillygoose

sunrise27 wrote: »

Thank you so much for your help although I was hoping the tax code was wrong lol I think I will be choosing the next company car ha ha ha

no probs.. I do have sympathy, I have a hybrid so in the lowest CO2 band possible, but my tax bill for it will double in the next couple of years and triple after that :eek::eek::eek:

Darksparkle

sunrise27 wrote: »

Thank you so much for your help although I was hoping the tax code was wrong lol I think I will be choosing the next company car ha ha ha

Suppose it depends on your personal circumstances.

If 40% taxpayer it costs you approx £280 per month for the company car. That then includes all road tax, insurance, services, repairs, MOT etc.

If a 20% taxpayer, just £140 per month.

My OH is £296 per month just for his own car and insurance.

sunrise27_2

One last question don't know if you can help ? If I'm right in thinking the percentage will rise from 25% to 27% next year , if he's a 20% tax payer how much difference are we talking in the amount of tax he would have to pay next year 2017 / 2018 ? Just a rough idea will do , I do love to have my finances under control . I have a five year plan in place at the moment , sad I know lol

sillygoose

sunrise27 wrote: »

One last question don't know if you can help ? If I'm right in thinking the percentage will rise from 25% to 27% next year , if he's a 20% tax payer how much difference are we talking in the amount of tax he would have to pay next year 2017 / 2018 ? Just a rough idea will do , I do love to have my finances under control . I have a five year plan in place at the moment , sad I know lol

£33400 x 27%, £9018 x 20% = £1804 a year (£150 a month)

sunrise27_2

Sorry last question and how does that compare to this year 2016/ 2017 at 25% ? I do really appreciate your help X

Darksparkle

sunrise27 wrote: »

Sorry last question and how does that compare to this year 2016/ 2017 at 25% ? I do really appreciate your help X

Just do the exact same calculation but replace the %.

£33,400 x 25% = £8350 x 20% = £1670 (£140 per month)

Bigphil1474

You may have already considered this, but the Inland Revenue allow 45p a mile for work mileage, so if he is getting 7p a mile, you may be able to claim some tax back on that if it's not already done in the P11D(?)

sunrise27_2

Oh that's interesting , how do we find out more ?

maddogb

Bigphil1474 wrote: »

You may have already considered this, but the Inland Revenue allow 45p a mile for work mileage, so if he is getting 7p a mile, you may be able to claim some tax back on that if it's not already done in the P11D(?)

are you sure it works that way? as far as I understood it the IR allows you to be paid upto 45ppm without being taxed on it, not sure if an underpayment will attract tax relief as that can be claimed via the fuel expenditure.